Tuesday, 2 February 2010

If I know Gordon Brown, this article tells me more Quantitative Easing is coming. £300B+ of it.

The UK banking system is set to be £300 Billion pounds short of funds to cover the amount of mortgage demand between now and 2014. This doesn't sound like a factor that is going to help support the housing market to me...

As I say, it won't be politically expedient for Gordon for there to be Credit Crunch 2. So I would say we can rely on him to lean on the Bank of England to print up another £300B or so to paper over this little problem. Why not? We printed up £200B last year and things are still working OK aren't they? What's another £300B...

These days a Billion doesn't sound like a lot does it? So, brother can I borrow a Billion from you? No? Oh well, worth a try.

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